The contraction in net employment has been smaller in Russia than in Eastern Europe, but Russian unemployment has been increasing and will probably increase further.Registered unemployment in Russia is now 2 percent; surveys indicate a true rate of between 5 and 6 percent. Until now, flows in...

June 1996The authors explain why in the Former Soviet Union (FSU) - especially Russia - unemployment has remained low and employment in state and privatized firms has remained high, while at the same time the informal or unofficial economy has grown swiftly. They trace this development to a...